1. Low Inventory

When demand is high and supply is low, it strengthens the seller’s market. Homes for sale will see a large number of interested parties with multiple offers, almost always ending in a bidding war and often times a sale above the market value. In June, Long & Foster reported a 23% drop in inventory from last year. Richmond is clearly experiencing a low inventory, seller’s market right now.

2. Prices Are Up

According to Trulia.com, the Median Rent rate has experienced a stark increase over the past few months. This has some people reconsidering their choice to rent and looking closer at their buying options. In February, rent averaged around $1,200 a month. In July, the average is upwards of $1,400. Long & Foster also cites a median sale price increase of around $25,000. That’s a 10% increase!

3. Rates Are Rising

As predicted, interest rates are rising. While this might normally deter buyers from taking the plunge, a slow, steady increase could have the opposite affect. Rising rates means a healthy, growing economy; which, in turn, means growing salaries and more stable finances. Buyers should jump on a purchase of their dream homes now before rates rise even higher.

Needless to say, the Richmond market is hot right now. Did you now we offer Free Online Courses that help you keep up with trends like these in your area? Discover our Continuing Education Classes today!